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According to the Ricardian Equivalence Proposition,a Temporary Government Budget Deficit

Question 83

Multiple Choice

According to the Ricardian equivalence proposition,a temporary government budget deficit created by cutting taxes


A) will cause desired consumption to increase.
B) will cause future taxes to increase but will have no real economic effects.
C) will have the same real economic effects as a budget deficit created by raising government spending.
D) would have the same real effects whether or not consumers expect future taxes to change.

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